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Anti-Recession Tactics

Published under Business by writer.

Despite the recession, it’s clear that some products are doing surprisingly well. Phillip-Morris tobacco products, McDonalds hamburger franchises, Wal-mart super stores, Kraft Foods, Johnson & Johnson, Costco Wholesale, Toy Industry Association companies and Novartis medical supplies are all faring quite well. “Some companies get healthier and stronger after weathering downturns,” says Vivek Wadhwa, founder of technology startup Relativity Technologies. Here are some anti-recession tactics and tips from some of America’s top-performing enterprises.

The most important of all anti-recession tactics is to understand the new problems your customers face and offer them innovative solutions. The most successful businesses are ones that can save customers money, make their lives less stressful and offer more value. For instance, one company developed a fast-curing resin to maximize productivity for injection-molding machines; yet, when the recession happened and greater output was no longer needed, the company switched gears and developed a less expensive, slower-curing resin, which was ultimately profitable. “We can’t add meat to a burger anymore,” admits CKE marketing chief Brad Haley, who oversees the Hardee’s and Carl’s Jr franchises. When times are tough, executives need to be more creative. He adds, “Carl’s Jr. is promoting a guacamole bacon cheeseburger. Avocados are a less expensive topping.”

Some managers remain purse-lipped and hunker down in their bunkers as their primal anti-recession tactics. Yet tips from the most successful CEOs focus on creating a balance between realism and optimism. No matter what the situation may be, a good management team must always be communicating with the rest of the employees. No climate is worse for productivity than employees who worry about being fired, suppliers who fear they won’t get paid and customers who have no confidence. Julia Stewart, CEO of DineEquity (parent company of Applebee’s and IHOP) says, “It’s important to assure your employees by making clear your vision, making sure they know that you care, and making sure that you’re direct and honest. They just want the truth.” During a recession, it’s important to be realistic but also to emphasize what’s working to instill confidence in the workforce.

In the past, anti-recession tactics used to be to take the business overseas. Yet, as time goes by, the wage gap in China, Malaysia, Thailand and India is rapidly shrinking as these emerging superpowers begin to gain momentum. Manufacturing costs, taxes, tariffs, speed, marketing training and transition expenses can all rack up the expenses. That doesn’t mean that executives shouldn’t recruit for the best talent, however. Now, with so many diligent worker bees out on the market, it’s a good time to weed out the non-performers and replace them with top talent. Mel Stark of the Hay Group consulting firm says that the best companies go the extra mile to reward their “most focused and driven employees” — recession or not.

Jeremy Larson is a foremost expert in finding acid reflux medication field. His work has been extensively published in various online publications in the areas of medications for acid reflux. For more information on the treatment, visit remedyforacidreflux.com.

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